Scarborough Channel Islands Limited has launched a new savings account, Offshore Flexi-120 Direct, which will offer an annual interest rate of 6.55% pa AER variable and is guaranteed to exceed the Bank of England base rate until December 31, 2008.

The account can be opened with a minimum initial investment of GBP5,000 and has a maximum investment limit of GBP1 million per customer. For a notice account, one withdrawal of up to GBP5,000 is allowed per calendar month, without notice or loss of interest, providing that 50% of the original balance is maintained. Further withdrawals or closure are subject to 120 days notice, or immediately with the loss of 120 days gross interest.

Tony Burdin, managing director of Scarborough Channel Islands Limited (SCIL), said: With Offshore Flexi-120 Direct, and the range of other competitive accounts we have brought to market recently, SCIL is keeping its promise to offer innovative savings products to meet the changing needs of today’s customers.

With uncertainty surrounding future interest rates, this latest account is designed to give savers the peace of mind of knowing that their rate of return will remain competitive. Offshore 90 must be opened with new funds, using the form available from SCIL’s website. However, prospective investors without Internet access may telephone for a postal application form.